Sudan Blocks South Sudanese Oil Exports Via Its Pipelines
Sudan blocked oil exports from South Sudan via its pipelines and will only allow them to resume once a bilateral agreement has been reached on payment for the shipments, Sudanese Oil Minister Ali Ahmed Osman said.
Exports were stopped two weeks ago, Osman told reporters today in Khartoum, the capital.
Last month, Sudan threatened to block shipments unless an accord on transit fees and revenue sharing was agreed. South Sudan owes northern neighbour $727 million for the August to November period, according to Osman.
Landlocked South Sudan is trying to end its reliance on the north by talking to companies about building an export pipeline through Kenya, according to the U.S. Energy Information Administration. While South Sudan took control of about three- quarters of the former state’s output of 490,000 barrels a day when it seceded in July, it relies on the north for access to refining and an export terminal on the Red Sea.
To contact the reporter on this story: Salma El Wardany in Khartoum at selwardany@bloomberg.net.
To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.
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